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04.09.2017

¹9,2017

Êiëüêiñòü ïåðåãëÿäiâ: 36

PROBLEMS OF THE ECONOMIC THEORY


UDC 330.342

A. I.  K R E D I S O V,
Doctor of Econ. Sci.,
Professor of the Chair of International Business
Institute of International Relations
Taras Shevchenko National University of Kyiv

© Kredisov Anatolii Ivanovych, 2017;

e-mail: kredisov_ai@ukr.net

THEORETICAL APPROACHES TO THE STUDY OF STAGES OF MARKET ECONOMY DEVELOPMENT

Summary

Market relations have been considered since the period of primitive society. Its economy cannot be called market one, however even in the times of natural economy there existed an exchange of consumer goods, which resulted in a special kind of activity – trade. It was for the convenience of the exchange that people invented money, and over time, there also a banking industry arose. Economic institutions, as dominant in human relations, are gradually changing political and social institutions, and with them the formational structure of society is also changed.
Classical school of economic science theoretically comprehended the principles of bourgeois society, which became a market economy. Under its conditions, labor and consumer goods are not just the wealth of society. Labor determines the value of these benefits, makes them a capital, that is, the value that brings added value (profit). The pursuit of profit and the entrepreneurial spirit of the owner of capital have determined the progressiveness of capitalism, as well as the essence of the capitalist mode of production.
Over time, the capitalist mode of production under conditions of economic freedom faced a number of hard-to-solve problems: first of all, with regard to the achievement of social equality and justice and the lack of necessary democracy not only in political and social life of society but also in management of production. This involves social transformation (socialization) of the market economy, as well as political and social institutions of society as a whole. So, modern economic institutions are becoming more dependent on them than they were before. Evidence of this is economic consequences of numerous socio-political events of the late 20th and early 21st centuries: collapse of the USSR, migration of population in many countries, separatism, terrorism, arms race, Brexit, and so on.
Thus, the study of the current stage of market economy today must be carried out in conjunction with the analysis of development of political and social institutions. It is also important to take into account the effectiveness of global economic management and assess the effectiveness and influence of leading international organizations (UN, IMF, ILO, World Bank, WTO, etc.). Only such systematic research can identify problems and outline the ways of civilizational transformations of developed capitalist and developing countries that have embarked on the path of development of market economies (p. 3–18).
Keywords: market, capital, capitalization, socialization, collective economic institutions, management, corporate social responsibility, public-private partnership.

References


1. Maslov P. Teoriya Razvitiya Narodnogo Khozyaistva. Vvedenie v Sotsiologiyu i Politicheskuyu Ekonomiyu [Theory of Development of the National Economy. Introduction to Sociology and Political Economy]. St. Petersburg, PH of V. Bezobrazov and Co., 1910 [in Russian].
2. Aristotle. Sochineniya. V 4 t. [Compositions. In 4 volumes]. Moscow, Mysl’, 1983, Vol. 4 [in Russian].
3. Katsenelanbaum Z.S. Uchenie o Den’gakh i Kredite. Ch. II [The doctrine of money and credit. Part II]. Moscow, Ekonomicheskaya zhizn’, 1928 [in Russian].
4. Maiburd E.M. Vvedenie v Istoriyu Ekonomicheskoi Mysli. Ot Prorokov do Professorov [Introduction to the History of Economic Thought. From Prophets to Professors]. Moscow, Delo, 2000 [in Russian].
5. Blaug M. Ekonomicheskaya Mysl’ v Retrospektive [Economic Theory in Retrospect]. Moscow, Delo Ltd, 1994 [in Russian].
6. Petty W. Ekonomicheskie i Statisticheskie Raboty [Economic and Statistical Works]. Moscow, Sotsekgiz, 1940 [in Russian].
7. Landreth H. A History of Economic Theory. Scope, Method and Content. Boston, Haughton Mifflin Company, 1976.
8. Smith A. Issledovanie o Prirode i Prichinakh Bogatstva Narodov [An Inquiry into the Nature and Causes of the Wealth of Nations]. Moscow, Sotsekgiz, 1962 [in Russian].
9. James E. Istoriya Ekonomicheskoi Mysli XX Veka [History of Economic Thought of the XX-th century]. Moscow, Foreign literature PH, 1959 [in Russian].
10. Keynes J.M. Obshchaya Teoriya Zanyatosti, Protsenta i Deneg [The General Theory of Employment, Interest and Money]. Moscow, Foreign literature PH, 1949 [in Russian].
11. Schumpeter J.A. Kapitalizm, Sotsializm i Demokratiya [Capitalism, Socialism and Democracy]. Kyiv, Osnovy, 1995 [in Ukrainian].
12. Dierkes M., Antal A.B. Whither corporate social reporting: is it time to legislate? California Management Review, 1986, Vol. 28, No. 3, pp. 106–121.
13. Porter E.M., Kramer M.R. Strategy and society. The link between competitive advantage and corporate social responsibility. Harvard Business Review, 2006, Vol. 84 (12), pp. 78–92.
14. Kredisov A.I. Orhanizatsiinyi vektor rozvytku suchasnoho biznesu [The organizational vector of development of modern business]. Ekonomika Ukrainy – Economy of Ukraine, 2013, No. 10, pp. 21–31 [in Ukrainian].
15. Kredisov A.I., Bilous A.O. Derzhavno-pryvatne partnerstvo: svitovyi dosvid ta ioho vykorystannya v Ukraini [State-private partnership: the world experience and its use in Ukraine]. Ekonomika Ukrainy – Economy of Ukraine, 2016, No. 2, pp. 4–15 [in Ukrainian].
16. Van H.H., Koppen J.J. Building public-private partnerships: assessing and managing risks in post development. Public Management Review, 2001, Vol. 4, No. 1, pp. 593–616.
17. Greve C. Public-private partnerships in Scandinavia. International Public Management Review, 2003, Vol. 4, No. 2, pp. 59–68.
18. Blondal J.R. International Experience Using Outsourcing, Public Private Partnerships and Vouchers. Arrington, IMR Centre for the Business of Government, 2005.
19. Grytsenko A.A. Kapitalizatsiya i sotsializatsiya ekonomiki v retrospektive i perspektive, v: Metodolohiya, Teoriya ta Praktyka Analizu Suchasnoho Suspil’stva [Capitalization and socialization of the economy in retrospect and perspective, in: Methodology, Theory and Practice of Analysis of Modern Society]. Kharkiv, V.N. Karazin Kharkiv National University, 2009, Iss. 15, pp. 191–195 [in Russian].

SCIENTIFIC DISCUSSIONS

UDC 338.26

V. P. O N Y S H C H E N K O,
Professor, Doctor of Econ. Sci.,
Professor of the Department of International Economic Relations,
Kyiv National University of Trade and Economics

© Onóshchenko Volodymyr Pylypovych, 2017;

e-mail: ov2016@ukr.net

SOCIAL PRECONDITIONS FOR ECONOMIC DEVELOPMENT OF UKRAINE
Summary

Although social preconditions for Ukraine’s economic development are recognized as important, the overwhelming majority of publications focus on its purely economic problems (such as industrial development, innovation, efficiency, etc.).
Fundamental importance of civilizational attitudes of Ukraine’s population, its culture and social capital for economic development of Ukraine is shown.
To determine the deep content of the problem of Ukraine’s backwardness, the author turns to works on the theory of divergence of economic development of countries (by such scientists as D. North, L. Harrison, E. Helpman, E. Phelps, D. Acemoglu and J. Robinson and others) and comes to conclusions that (i) culture and institutions are interrelated; (ii) the former gives the impetus for institutions’ changes; (iii) the former determines the preconditions that can eventually radically change a society.
It is shown that “historical track” of Ukraine and endogenous informal institutions cause considerable resistance to liberal reforms. The author believes that there are three strategies to overcome resistance and engraft institutions such as European ones: (i) “hard power”; (ii) “soft power”; (iii) “persistent soft power”.
It is asserted that culture and institutions form social capital of the state and change under its influence. Effectiveness of social capital implementation is determined by dynamics of economic development of the state and quality of its citizens’ life. In the context of social capital, the author examines the “free rider problem”, the problem of trust and shadow economy and determines their state as indicators of the level of its development. The author emphasizes that for success of reforms the communicative influence on formation of a certain economic mentality and culture in society is of great importance.
Keywords: divergence of economic development, culture, institutions, social capital, trust, “free rider problem”, public rhetoric (ðð. 19–37).

References

1. Heyets V.M. Obshchestvennyi kapital – 25: ogosudarstvlenie ili gosudarstvennoe sozidanie? [Social capital – 25: establishment of the state or its development?]. Ekonomika Ukrainy – Economy of Ukraine, 2016, No. 8, pp. 3–6 [in Ukrainian].
2. Deaton A. Velikii Pobeg. Zdorov’e, Bogatstvo i Istoki Neravenstva [The Great Escape. Health, Wealth, and the Origins of Inequality]. Moscow, PH of Gaidar Institute, 2016 [in Russian].
3. Mizes L. Liberalizm [Liberalism]. Moscow, Sotsium, 2007 [in Russian].
4. Sorokin P. Obshchedostupnyi Uchebnik Sotsiologii. Stat’i Raznykh Let [Public Textbook of Sociology. Articles of Different Years]. Moscow, Nauka, 1994 [in Russian].
5. Helpman E. Zagadka Ekonomicheskogo Rosta [The mystery of economic growth]. M. Khanaeva, E. Sinel’nikova (Eds.). Moscow, PH of Gaidar Institute, 2011 [in Russian].
6. North D. Instituty, Institutsional’nye Izmeneniya i Funktsionirovanie Ekonomiki [Institutions, Institutional Change and Economic Performance]. Moscow, Fund “Nachala”, 1997, ð. 21 [in Russian].
7. Diamond J. Ruzh’ya, Mikroby i Stal’: Sud’by Chelovecheskogo Obshchestva [Guns, Germs, and Steel: The Fates of Human Societies]. Moscow, AST, 2010 [in Russian].
8. Harrison L. Kto Protsvetaet? Kak Kul’turnye Tsennosti Sposobstvuyut Uspekhu v Ekonomike i Politike [Who Prospers: How Cultural Values Shape Economic and Political Success]. Moscow, New PH, 2008 [in Russian].
9. Lal D. Neprednamerennye Posledstviya. Vliyanie Obespechennosti Faktorami Proizvodstva, Kul’tury i Politiki na Dolgosrochnye Ekonomicheskie Rezul’taty [Unintended Consequences: The Impact of Factor Endowments, Culture, and Politics on Long-run Economic Performance]. Moscow, IRISEN, 2007 [in Russian].
10. Fukuyama F. Velikii Razryv [The Great Disruption: Human Nature and the Reconstitution of Social Order]. Moscow, AST; AST MOSKVA, 2008 [in Russian].
11. Fukuyama F. Doverie: Sotsial’nye Dobrodeteli i Put’ k Protsvetaniyu [Trust: The Social Virtues and the Creation of Prosperity]. Moscow, AST, 2004 [in Russian].
12. North D. Ponimanie Protsessa Ekonomicheskikh Izmenenii [Understanding the Process of Economic Change]. Moscow, PH of HSE, 2010 [in Russian].
13. McCloskey D. Ritorika Ekonomicheskoi Teorii, v: Istoki: Sotsiokul’turnaya Sreda Ekonomicheskoi Deyatel’nosti i Ekonomicheskogo Poznaniya [The Rhetoric of Economics, in: Origins: Socio-cultural Environment of Economic Activity and Economic Cognition]. Ya.I. Kuz’minov (Ed.). Moscow, PH of HSE, 2011, ðð. 252–320 [in Russian].
14. Mises L. Chelovecheskaya Deyatel’nost’: Traktat po Ekonomicheskoi Teorii [Human Activity: a Treatise on Economic]. Chelyabinsk, Sotsium, 2007 [in Russian].
15. Hayek F.A. Pravo, Zakonodatel’stvo i Svoboda: Sovremennoe Ponimanie Liberal’nykh Printsipov Spravedlivosti i Politiki [Law, Legislation and Liberty: A New Statement of the Liberal Principles of Justice and Political Economy]. Moscow, IRISEN, 2006 [in Russian].
16. Phelps E. Massovoe Protsvetanie: kak Nizovye Innovatsii Stali Istochnikom Rabochikh Mest, Novykh Vozmozhnostei i Izmenenii [Mass Flourishing: How Grassroots Innovation Created Jobs, Challenge, and Change]. Moscow, PH of Gaidar Institute, Fund “Liberal Mission”, 2015 [in Russian].
17. Reinert E.S. Kak Bogatye Strany Stali Bogatymi, i Pochemu Bednye Strany Ostayutsya Bednymi [How Rich Countries Got Rich ... and Why Poor Countries Stay Poor]. Moscow, PH of HSE, 2014 [in Russian].
18. Acemoglu D., Robinson J. Pochemu Odni Strany Bogatye, a Drugie Bednye. Proiskhozhdenie Vlasti, Protsvetaniya i Nishchety [Why Nations Fail: The Origins of Power, Prosperity, and Poverty]. Moscow, AST, 2016 [in Russian].
19. De Soto H. Zagadka Kapitala. Pochemu Kapitalizm Torzhestvuet na Zapade i Terpit Porazhenie vo Vsem Ostal’nom Mire? [The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else]. Moscow, Olimp Biznes, 2004 [in Russian].
20. Balserowicz L., Rzonca A. Zagadki Ekonomicheskogo Rosta: Dvizhushchie Sily i Krizisy – Sravnitel’nyi Analiz [Mysteries of Economic Growth: Driving Forces and Crises – a Comparative Analysis]. A.V. Kuryaev (Ed.). Moscow, Mysl’, 2012 [in Russian].
21. Alesina A., Giuliano P. Kul’tura i instituty [Culture and institutions]. Voprosy Ekonomiki – Issues of Economics, 2016, No. 11, pp. 24–56 [in Russian].
22. Zaostrovtsev A. Sovremennaya avstriiskaya shkola ob institutakh, problemakh razvitiya i roli ekonomista [Modern Austrian school on institutions, development problems and the role of the economist]. Voprosy Ekonomiki – Issues of Economics, 2015, No. 7, pp. 73–86 [in Russian].
23. Danylyshón B.M. Taktyka evolyutsionizmu v suchasnomu ekonomichnomu rozvytku svitu (v aspekti Tret’oi ta Chetvertoi promyslovykh revolyutsii) [The tactics of evolutionism in world’s modern economic development (in the aspect of the Third and Fourth industrial revolutions)]. Ekonomika Ukrainy – Economy of Ukraine, 2016, No. 8, pp. 44–61 [in Ukrainian].
24. Avtonomov V. Na kakie svoistva cheloveka mozhet operet’sya ekonomicheskii liberalizm? [Which human qualities can economic liberalism be based on?]. Voprosy Ekonomiki – Issues of Economics, 2015, No. 8, pp. 5–24 [in Russian].
25. Chepurko G. Kul’turna mental’nist’ tsyvilizatsiinoho vyboru [Cultural mentality of civilizational choice]. Ukrains’ke suspil’stvo: monitoryng sotsial’nykh zmin. Zb. nauk. Prats’ Instytutu sotsiolohii NAN Ukrainy – Ukrainian society: monitoring of social changes. Coll. of Scientific Works of the Institute of Sociology of the NAS of Ukraine, 2015, Iss. 2, pp. 31–39 [in Ukrainian].
26. Putnam R.D., Leonardi R., Nanetti R.Y. Tvorennya Demokratii: Tradytsii Gromadyans’koi Aktyvnosti v Suchasnii Italii [Making Democracy Work: Civic Traditions in Modern Italy]. Kyiv, Osnovy, 2001, ð. 34 [in Ukrainian].
27. Novikov V. Sotsial’nyi kapital Ukrainy v tsyfrakh ta porivnyannyakh [Social capital of Ukraine in figures and comparisons], available at: http://www.pravda.com.ua/columns/2013/06/10/6991590/ [in Ukrainian].
28. Yudanov A., Pyrkina O., Bekker E. O granitsakh nerazreshimosti “problemy bezbiletnika” [On the limits of unsolvability of the “free rider problem”]. Voprosy Ekonomiki – Issues of Economics, 2016, No. 11, pp. 57–75 [in Russian].
29. Urchik G.M., Samoliuk N.M. Otsinyuvannya dyferentsiatsii dokhodiv naselennya Ukrainy z urakhuvannyam ikh tin’ovoi komponenty [Income differentiation of residents of Ukraine under conditions of shadow economy]. Demografiya ta sotsial’na ekonomika – Demography and social economy, 2016, No. 3, pp. 133–145 [in Ukrainian].
30. Michel de Montaigne. Opyty. Kniga pervaya, glava XXI “O sile nashego voobrazheniya” [Essays. Book the first, chapter XXI “Of the Force of Imagination”]. Moscow, Golos, 1992 [in Russian].

GOVERNING THE ECONOMY: THEORY AND PRACTICE

UDC 332.122

A. O. K A S Y C H,
Professor, Doctor of Econ. Sci.,
Head of Management Department
Kyiv National University of Technologies and Design

© Kasych Alla Oleksandrivna, 2017;
 e-mail: kasich.alla@gmail.com

MODERNIZATION PROCESSES IN UKRAINE IN THE CONTEXT OF THE
 WORLD EXPERIENCE

Summary

Theoretical, methodological and analytical issues of dynamics of modernization processes, which envisage modernization of both the economic system as a whole and individual spheres of society's life, have been analyzed. The importance of researching the modernization processes in Ukraine is substantiated. It is noted that exactly the dynamics of modernization processes determines the ability of developing countries to overcome the lagging behind developed countries.
Classification features are considered and a generalized typology of modernization processes is presented; that allows forming a complex vision of their content. It is emphasized that it is multilevel and multi-dimensional modernization that can provide real economic development of the system.
In the context of the most significant spheres of modernization (economic, social and environmental), a set of systematic indicators and their processing methods for analytical research is considered. Results of the analysis of dynamics of modernization processes in various countries of the world are presented: partial and integral indices of modernization were calculated and countries were ranked by the level of modernization. Peculiarities of economic, social and environmental modernization of various countries and Ukraine are determined. It is emphasized that modernization index is a sectional image of renewal processes of all spheres of activity and functioning of the country at a certain point in time. This index also allows monitoring the dynamics of modernization of individual countries in comparison with others.
An attention was paid to regularities of modernization processes, which were singled out on the basis of generalization of the world experience. It is noted that the priority tasks for Ukraine are: (i) forming a modernization strategy of the country with specification of the target tasks in the context of regulated periods of implementation; (ii) constructing a political system that can provide guidance on all social development for the purpose of modernization; (iii) creating the favorable political, legal, economic and institutional conditions for activation of modernization at all levels of functioning the society.
It is emphasized that to direct the development of the country into the area of modernization processes, it is necessary to take the target, sectoral, resource, organizational and time aspects as a basis; focusing on these aspects will provide the target orientation of the corresponding strategy.

Keywords: modernization processes, economic and environmental modernization, indices, levels, dynamics, strategy (pp. 38–58).

References


1. Aron R. Demokratiya i Totalitarizm [Democracy and Totalitarianism]. Moscow, Tekst, 1993 [in Russian].
2. Bell D. Gryadushchee Postindustrial’noe Obshchestvo: Opyt Sotsial’nogo Prognozirovaniya [The Coming of Post-Industrial Society: a Venture in Social Forecasting]. Moscow, Academia, 2004 [in Russian].
3. Bauman Z. Individualizirovannoe Obshchestvo [The Individualized Society]. Moscow, Logos, 2005 [in Russian].
4. Weber M. Hospodarstvo i Suspil’stvo [Economy and Society]. Kyiv, Vsesvit, 2013 [in Ukrainian].
5. Welzel C., Inglehart R. Chelovecheskoe razvitie i “vzryv” demokratii: variatsii izmenenii rezhimov sredi 60 obshchestv [Human development and the “explosion” of democracy: variations of regime change across 60 societies]. Sotsiologiya: teoriya, metody, marketing – Sociology: theory, methods, marketing, 2008, No. 1, pp. 85–112 [in Russian].
6. Inglehart R., Welzel C. Modernization, Cultural Change, and Democracy: The Human Development Sequence. New York, Cambridge University Press, 2005.
7. Huntington S.P. The Change to Change: Modernization, Development, and Politics. Comparative Politics, 1971, Vol. 3, No. 3, pp. 283–322.
8. Lipset S.M. Political Man: The Social Bases of Politics. New York, Doubleday & Company, 1960.
9. Rostow W.W. The Stages of Economic Growth: A Non-Communist Manifesto. 3rd ed.  Cambridge, Cambridge University Press, 1991.
10. Balakireva O.M., Heyets V.M., Sidenko V.R. et al. Tsinnisna skladova modernizatsiinykh protsesiv u suchasnomu sotsiumi Ukrainy [Valuable component of modernization processes in modern socium of Ukraine]. Kyiv, NAS of Ukraine, Institute for Economics and Forecasting of the NAS of Ukraine, 2014 [in Ukrainian].
11. Obushna N.I. Modernizatsiya – suchasnyi trend rozvytku suspil’stva [Modernization – the modern trend of society development], available at: http://kbuapa.kharkov.ua/e-book/tpdu/2015-3/doc/1/06.pdf [in Ukrainian].
12. He Ch. Modernization Science: The Principles and Methods of National Advancement. Springer Science & Business Media, 2012.
13. Andrushkiv B.M., Amosha O.I., Aptekar S.S. et al. Strukturni Reformy Ekonomiky: Svitovyi Dosvid, Instytuty, Stratehii dlya Ukrainy [Structural Economic Reforms: World Experience, Institutes, Strategies for Ukraine]. V.I. Lyashenko, E.V. Savel’ev (Eds.). Ternopil, Economic thought of the TNEU, 2011 [in Ukrainian].
14. Heyets V. Liberal’no-demokratychni zasady: kurs na modernizatsiyu Ukrainy [Liberal-democratic principles: course to a modernization of Ukraine]. Ekonomika Ukrainy – Economy of Ukraine, 2010, No. 3, pp. 4–20 [in Ukrainian].
15. Innovatsiina Ukraina 2020: Natsional’na Dopovid’ [Innovative Ukraine 2020: National Report]. V.M. Heyets et al. (Eds.). Kyiv, NAS of Ukraine, 2015 [in Ukrainian].
16. Levkovets O.M. Modernizatsiya ekonomiky Ukrainy: zmist, umovy, ryzyky [The modernization of Ukrainian economy: essence, conditions, risks]. Biznes-Inform – Business Inform, 2011, No. 10, pp. 4–9 [in Ukrainian].
17. Tekhnolohichna modernizatsiya promyslovosti Ukrainy [Technological modernization of the industry of Ukraine]. L.I. Fedulova (Ed.). Kyiv, Institute for Economics and Forecasting of the NAS of Ukraine, 2008 [in Ukrainian].
18. Kindzers’kyi Yu.V. Promyslovist’ Ukrainy: Stratehiya i Polityka Strukturno-Tekhnolohichnoi Modernizatsii [Ukrainian Industry: Strategy and Policy of Structural and Technological Modernization]. Kyiv, NAS of Ukraine, Institute for Economics and Forecasting of the NAS of Ukraine, 2013 [in Ukrainian].
19. Chebanov A.A. Kontseptual’ni osnovy strukturnoi modernizatsii promyslovosti [Conceptual basis of industrial structure modernization]. Biznes-Inform – Business Inform, 2012, No. 11, pp. 134–137 [in Ukrainian].
20. Zhalilo Ya.A., Pokryshka D.S., Belins’ka Ya.V., Berezhnyi Ya.V. et al. Pislyakryzovyi Rozvytok Ekonomiky Ukrainy: Zasady Stratehii Modernizatsii. Analit. Dop. [Post-Crisis Development of Ukrainian Economy: Modernization Strategy Fundamentals. Analytical Report]. Ya.A. Zhalilo (Eds.). Kyiv, NISS, 2012 [in Ukrainian].

UDC 658.012.23

K. S.  B E Z G I N,
Associate Professor, Doctor of Econ. Sci.,
Professor of the Department of Management,
Vasyl’ Stus Donetsk National University
(Vinnytsya)

©  Bezgin Kostóantón Sergiiovych, 2017;

å-mail: âezgink@mail.ru.

IMPLEMENTATION OF NONLINEAR PARADIGM OF INNOVATION MANAGEMENT
Summary

Transformations in socio-economic sphere are beginning to sharpen the issue of empirical limitations of linear scheme of innovation development (represented by the triad “science – technology – production”, thus reducing the innovation activity of business entities and increasing the dissonance between enterprise and market with respect to innovations being created.
In view of this, it is necessary to search for epistemological foundations of innovation activity, which would correspond to increasing complexity and uncertainty of external environment to activate the innovation processes of Ukrainian enterprises and increase the congruence of innovations created.
The article shows that demarcation between linear and nonlinear paradigms of innovation management is the account of activities of all interested parties in the process of creation of innovation, which cannot be done using only the normative paradigm, constituted in provisions of classical innovation management. This has determined the need to expand traditional approach to innovation management by integrating the provisions of the descriptive paradigm.
An analysis of effective global innovation models allowed formulating the basic conceptual framework for innovation management in modern conditions: when identifying and introducing innovations, the high degree of cognitive heterogeneity of co-creation subjects is decisive factor, but not the profound professionalism and specialized knowledge of a limited group of experts. As synergistic preconditions ensuring the possibility of using the cognitive potential of innovative active subjects of the environment, the following factors are identified: (i) formation of a society of growing reflection, (ii) axiological fragmentation of society, (iii) growth of the number of independent expert groups, (iv) development of information and communication technologies, (v) epistemic merging of subjective and objective values, (vi) leveling of mechanisms of reduction of market complexity, etc.
Thus, increasing intellectualization of subjects of the environment in conjunction with existing experience of exploitation of object values, allows them to be identified as carriers of relevant socio-technical knowledge, which in behavioral and operational aspects outweigh the cognitive capabilities of the subjects of science and engineering. It updates the need to involve environmental actors in joint innovation. Thus, the nonlinear paradigm of innovation management implies the existence of a large number of sources of innovation, which extends mechanism of structural conjugation of market and enterprise, launching the process of symbiotic creativity through relevant to practical needs recombination and proliferation of the properties of innovations created.
Keywords: innovation, co-creation, polysubject, management, value, collaboration, structural conjugation (concept of autopoesis) (pp. 59–71).

References


1. Bezgin K.S. Upravlenie Protsessom Sozdaniya Tsennosti na Predpriyatii: Polisub’ektnost’ i Kollaboratsiya [Managing the Value Creation in an Enterprise: Polysubjectivity and Collaboration]. Kharkov, NTMT, 2015 [in Russian].
2. Lakhani Ê.R. et al. The Value of Openness in Scienti?c Problem Solving. Boston, Harvard Business School Press, 2007.
3. Innovatsiina Ukraina 2020 : Natsional’na Dopovid’ [Innovative Ukraine 2020: National Report]. V.M. Heyets et al. (Eds.). Kyiv, NAS of Ukraine, 2015 [in Ukrainian].
4. Kastells M. Informatsionnaya Epokha: Ekonomika, Obshchestvo i Kul’tura [The Information Age: Economy, Society and Culture]. Moscow, SU HSE, 2000 [in Russian].
5. Bogdanov A.A. Tektologiya: Vseobshchaya Organizatsionnaya Nauka, v 2 kn. Kn. 1. [Tectology: General Organizational Science, in 2 books. Book 1]. Moscow, Ekonomika, 1989 [in Russian].
6. Phelps E. Massovoe Protsvetanie: Kak Nizovye Innovatsii Stali Istochnikom Rabochikh Mest, Novykh Vozmozhnostei i Izmenenii [Mass Flourishing: How Grassroots Innovation Created Jobs, Challenge, and Change]. Moscow, PH of Gaidar Institute, Fund “Liberal Mission”, 2015 [in Russian].
7. Benkler Y. The Wealth of Networks: How Social Production Transforms Markets and Freedom. New Haven, Yale University Press, 2006.
8. Bhalla G. Collaboration and Co-creation: New Platforms for Marketing and Innovation. New York, Springer, 2011.
9. Leadbeater Ch. My – Dumaem: Massovye Innovatsii, ne Massovoe Proizvodstvo [We –Think: Mass Innovation, not Mass Production]. Moscow, Aquamarine book, 2009 [in Russian].
10. Prahalad C.K., Krishnan M.S. Prostranstvo Biznes-Innovatsii: Sozdanie Tsennosti Sovmestno s Potrebitelem [The New Age of Innovation: Driving Cocreated Value Through Global Networks]. Moscow, Yurait, 2011 [in Russian].
11. Ramaswamy V., Ozcan K. The Co-Creation Paradigm. Stanford, Stanford University Press, 2014.
12. Howe J. Kraudsorsing: Kollektivnyi Razum kak Instrument Razvitiya Biznesa [Crowdsourcing: Why the Power of the Crowd Is Driving the Future of Business]. Moscow, Alpina Publisher, 2012 [in Russian].
13. Hippel Å. Democratizing Innovation. Cambridge, MIT Press, 2005.
14. Chesbrough H. Otkrytye Innovatsii. Sozdanie Pribyl’nykh Tekhnologii [Open Innovation: The New Imperative for Creating and Profiting from Technology]. Moscow, Pokolenie, 2007 [in Russian].
15. Page S.E. The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies. Princeton, Princeton University Press, 2007.
16. Rifkin J. Tret’ya Promyshlennaya Revolyutsiya. Kak Gorizontal’nye Vzaimodeistviya Menyayut Energetiku, Ekonomiku i Mir v Tselom [The Third Industrial Revolution: How Lateral Power Is Transforming Energy, the Economy, and the World]. Moscow, Alpina non-fiction, 2014 [in Russian].
17. Raymond Å. The Cathedral and the Bazaar, available at: http://www.catb.org/esr/writings/cathedral-bazaar/.
18. Grunval’d A. Tekhnika i Obshchestvo: Zapadnoevropeiskii Opyt Issledovaniya Sotsial’nykh Posledstvii Nauchno-Tekhnicheskogo Razvitiya [Technology and Society: the West European Experience of Researching the Social Consequences of Scientific and Technological Development]. Moscow, Logos, 2011 [in Russian].

ECONOMY OF FOREIGN COUNTRIES

UDC 332.32:631.11 (569.4)

B. Ya.  K U Z N Y A K,
Doctor of Econ. Sci.,
Professor of the Department of International Economics and Marketing,
Poltava National Technical Yuri Kondratyuk University

(Kuznyak Bogdan Yaroslavovych), 2017;

e-mail: yulia.kovtun95@gmail.com.

TRANSFORMATION OF ISRAEL'S DESERT LANDS
TO HIGH-PRODUCTIVE FARMS

Summary


The article examines how Israel in a few decades had transformed desert lifeless lands with water shortages into high-productive farms. It happened due to introduction of advanced technologies, achievements of genetics, biotechnology, the latest agrotechnical equipment, new plant varieties, automation and computerization of production.
The development of the agrarian sector is promoted by the state, which supports the optimal volumes of production, controls its quality, facilitates its supply and marketing, and provides financial assistance.
The persistent work of people, enthusiasm, cohesion, unity, mutual assistance have led to a significant increase in crop yield and productivity of livestock. The main organizational forms in agriculture are kibbutzs, moshavs and farms. These forms are constantly evolving, improving; there is a transition from the equalizing distribution of welfare benefits to distribution, depending on the labor contribution of each member.
Keywords: kibbutz, moshavs, farms, crop yield, milk yield, science, technology (pp. 72–80).

References


1. Mikhailiv Yu. Lyshe kopitka pratsya i NTP vryatuyut’ agrariiv [Only laborious work and scientific and technical progress will save the agrarians]. Propozytsiya – Proposal, 2009, No. 1 [in Ukrainian].
2. Nazarenko A. Molochni riky Svyatoi zemli [Dairy rivers of the Holy Land]. Propozytsiya – Proposal, 2012, No. 7 [in Ukrainian].
3. Dzhalagoniya V. Schast’e, obretennoe v pustyne  [Happiness found in desert]. Ekho planety – Echoes of the Planet, 2010, No. 30 (1149) [in Russian].
4. Fedorchenko A.V. Izrail’skii variant razvitiya agrarnogo sektora ekonomiki [The Israeli variant of development of agrarian sector of economy]. Problemy sovremennoi ekonomiki – Problems of modern economics, 2002, No. 3/4 [in Russian].
5. Pavlychenko M.G. Z dosvidu vedennya molochnoi galuzi Izrailyu [According to the experience of the dairy industry of Israel]. Ekonomika APK – The Economy of Agro-Industrial Complex, 2012, No. 6, pp. 130–133 [in Ukrainian].
6. Shteinman M.Ya. Kibutsy: vozniknovenie, dostizheniya, problemy [Kibbutzs: occurrence, achievements, problems]. Mizhnarodnyi zbirnyk naukovykh prats’ – International collection of scientific works, Is. 3 (15), pp. 58–70 [in Russian].
7. Marchenko A. Mars protiv Merkuriya (ob ekonomike Izrailya) [Mars vs. Mercury (on the economy of Israel)]. Aziya i Afrika segodnya – Asia and Africa today, 1989, No. 11 [in Russian].
8. Nikonov A. Kibutsy kak oni est’ [Kibbutzs as they are]. Sel’skaya zhizn’ – Rural life, 1991, January 4 [in Russian].
9. Evkeev O. Velyke moloko malen’koi krainy [Great milk of a small country]. Ahroprofi – Agroprofi, 2012, No. 15-16 [in Ukrainian].
10. Smilyanskii Ya. Kibuts mezhdu pravdoi i mifom [Kibbutz between truth and myth], available at: izrus.co.il/weeklynews [in Russian].
11. Zvyagel’skaya I.D., Karasova T.A., Fedorchenko A.V. Gosudarstvo Izrail’ [The State of Israel]. Moscow, Institute of Oriental Studies of the RAS, 2005 [in Russian].

SOCIAL PROBLEMS IN MANAGEMENT PRACTICE

UDC 352.07:338.24

S. V.  B O H A C H O V,
Professor, Doctor of Econ. Sci.,
Honored Economist of Ukraine,
Leading Researcher,

© Bohachov Serhii Valentynovych, 2017;

e-mail: mistoznav@ukr.net
M. V.  M E L’ N Y K O V A,
Associate Professor, Doctor of Econ. Sci.,
Leading Researcher

© Mel’nykova Maryna Vitaliivna, 2017;

e-mail: marvit1511@gmail.com

Department of Economic and Legal Problems of City Studies,
Institute of Economic and Legal Research of the NAS of Ukraine
(Kyiv)

MANAGEMENT OF URBAN AGGLOMERATIONS DEVELOPMENT AT THE STATE AND LOCAL LEVELS
Summary

The article is devoted to study of urban agglomerations development in Ukraine and management of this process at the state and local levels. Peculiarities of domestic urban agglomerations are revealed and possibilities of managing their development are determined. Peculiarities of domestic urban agglomerations are due to lack of their legal status and the need to combine efforts of territorial communities to solve issues of common interest. Possibility of solving these tasks is carried out by implementing the joint projects on the basis of decision-making on development management. Expediency of transition to a more integrated form of association of efforts (a union of territorial communities within the urban agglomeration) is determined. General methodological provisions for managing the urban agglomerations development at the state and local levels have been formed. These provisions envisage: (i) selection of general and local priorities of urban agglomeration development, (ii) justification of the principles of making managerial decisions for achievement of the chosen priorities, (iii) development of projects and their financing at the expense of state and local budgets and attracted funds from private investors. Forms of participation of state authorities, local self-government, population and business in the process of managing the urban agglomerations development are systematized. It has been proved that development and implementation of joint development projects require coordinated information and organizational support for managing the resources of territorial communities located on the territory of agglomeration. Solving the tasks for improving the legislation on cooperation of territorial communities and supporting the organizational and informational coherence of resource provision of territorial communities making up the urban agglomeration, will contribute to improving the management of their development at the state and local levels (p. 81–91).
Keywords: urban agglomerations, development management, state and local levels of governance.

References


1. Zinchenko T.E. Kontseptual’ni osnovy formuvannya mis’kykh aglomeratsii [Conceptual framework for establishment of urban agglomerations]. Efektyvna ekonomika – Effective economy, 2012, No. 6, available at: http://www.economy.nayka.com.ua/?op=1&z=1204 [in Ukrainian].
2. Tyshchenko O.P., Prosianyk N.V. Resursnyi potentsial ta hospodarstvo mis’kykh aglomeratsii: problemy efektyvnoho upravlinnya [Resource potential and economy of urban agglomerations: problems of effective management]. Ekonomichnyi chasopys-XXI – Economic Annals-XXI, 2013, No. 9-10 (2), pp. 3–6 [in Ukrainian].
3. Vasyl’chenko G.V., Parasyuk I.L. Stratehichne planuvannya rozvytku aglomeratsii ta subrehioniv Ukrainy yak instrument pidvyshchennya konkurentospromozhnosti rehionu, v: Formuvannya Rynkovoi Ekonomiky [Strategic Planning of the Development of Agglomerations and Subregions of Ukraine as a Tool for Improving the Competitiveness of a Region, in: Formation of a Market Economy]. Kyiv, KNEU, 2011, Part 1, pp. 223–230 [in Ukrainian].
4. Averkina M.F. Zabezpechennya Stiikoho Rozvytku Mist ta Aglomeratsii: Teoriya, Metodolohiya, Praktyka [Ensuring the Sustainable Development of Cities and Agglomerations: Theory, Methodology, Practice]. Lutsk, RVV of Lutsk NTU, 2015 [in Ukrainian].
5. Nazarko A.T. Mis’ki aglomeratsii v Ukraini: problemy pravovoi instytutsionalizatsii [The city agglomerations in Ukraine: problems of legal institutionalisation]. Aktual’ni problemy derzhavy i prava – Current Problems of State and Law, 2011, Iss. 61, pp. 144–150 [in Ukrainian].
6. Sharyi V.I. Terytorial’na orhanizatsiya mistsevoho samovryaduvannya: efektyvnist’ upravlinnya nadvelykymy aglomeratsiyamy ta mehalopolisamy [Territorial organization of local self-government: efficiency of management of ultra-large agglomerations and megalopolises]. Universytets’ki naukovi zapysky – University scientific notes, 2010, No. 2, pp. 261–269 [in Ukrainian].
7. Yalovyi V. Printsipy gosudarstvennogo upravleniya i mestnogo samoupravleniya v usloviyakh stolichnoi aglomeratsii [Principles of state administration and local self-government in the conditions of metropolitan agglomeration]. Vestnik Natsional’noi akademii gosudarstvennogo upravleniya pri Prezidente Ukrainy – Bulletin of the National Academy for Public Administration under the President of Ukraine, 2009, Iss. 2, pp. 181–191 [in Russian].
8. Lyubchenko P.M. Spivrobitnytstvo terytorial’nykh gromad: teoriya i praktyka, v: Problemy zakonnosti [Territorial communities cooperation: theory and practice, in: Problems of legality]. Kharkiv, Yaroslav Mudryi National Law University, 2015, Iss. 129, pp. 50–59 [in Ukrainian].
9. Tolkovanov V.V., Gertsog P., Guk A.K. et al. Rozvytok Mizhmunitsypal’noho Spivrobitnytstva: Vitchyznyanyi ta Zarubizhnyi Dosvid [Development of Inter-Municipal Cooperation: Domestic and Foreign Experience]. Kyiv, Kramar, 2011 [in Ukrainian].
10. Trachuk P.A. Uchast’ Gromadyan Ukrainy u Mistsevomu Samovryaduvanni [Participation of Ukrainian Citizens in Local Self-Government]. Uzhgorod, Self-supporting editorial and publishing division of the press and information department, 2003 [in Ukrainian].
11. Isakin M.A. Vyyavlenie prioritetov sotsial’no-ekonomicheskogo razvitiya regiona: matematiko-metodicheskoe obespechenie i ego eksperimental’naya aprobatsiya na primere Permskoi oblasti [Identification of priorities for socio-economic development of a region: mathematical and methodological support and its experimental approbation on the example of the Perm region]. Candidate’s thesis. Moscow, HSE State University, 2007 [in Russian].
12. Balashova S.P. Strategicheskoe upravlenie resursnym potentsialom munitsipal’nogo obrazovaniya [Strategic management of the resource potential of the municipality entity]. Vestnik Altaiskogo gosudarstvennogo agrarnogo universiteta – Bulletin of Altai State Agricultural University, 2010, No. 10 (72), pp. 113–117 [in Russian].
13. Ablyazova E.Z. Svitovyi dosvid opodatkuvannya nerukhomosti [Wold experience of taxation of the real estate]. Visnyk Odes’koho natsional’noho universytetu – Odesa National University Herald, 2013, Vol. 18, Iss. 3/1, pp. 7–10 [in Ukrainian].

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SUMMARIES
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EDITORIAL POLICY AND ETHICAL PRINCIPLES
 



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